Organic Tea Market Growth & Trends

The global organic tea market size is expected to reach USD 1.12 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 16.2% from 2020 to 2027. The rising importance of a healthy lifestyle among the consumers in light of increased awareness regarding wellness nutrition through social media and satellite television channels is expected to expand the market scope. Furthermore, growing concerns related to adverse effects associated with synthetic ingredients in packaged food and beverages are expected to compel the buyers to increase spending on consuming organic tea as a key alternative to conventional drinks.

Product launches have been playing a crucial role in shaping the industry dynamics. For instance, in October 2019, Celestial Seasonings launched TeaWell, a product line that includes organic wellness tea, which provides a vigorous combination of health benefits, along with pleasant flavors. The line offers a large number of flavors formed using a blend of herbs and botanicals that improve the shape of both mind and body. These products contain “Daily Wellness Core”, which is a combination of four essential ingredients, including panax ginseng, dandelion root, elderberry, and green rooibos.

It is claimed that panax ginseng improves mental vitality, dandelion root enhances digestion, elderberry boosts immunity, and green rooibos acts as antioxidants. Some of the popular products being offered under the product line are Organic Green Tea with Grapefruit, Organic Moringa Lemon Ginger, and Organic Hibiscus with Lime. These products are available for USD 4.99.

Organic Tea Market Report Highlights

  • The herbal product segment is expected to witness the fastest growth during forecast years with a CAGR of 17.1% from 2020 to 2027. The rising importance of herbal tea as a daily drink for maintaining a healthy lifestyle is expected to have a positive impact on the segment growth over the next few years
  • Based on taste, the flavored segment accounted for the largest share of more than 80.0% in 2019. This is attributed to the increased preference for these products due to the easy access of such products to the consumers through offline as well as online channels
  • By form, the leaf and powder segment accounted for the largest share of more than 45.0% in 2019. The growth of the segment is attributed to the first-mover advantage associated with leaf as well as powder forms
  • Asia Pacific dominated the market with more than 35.0% share in 2019. Extensive customer base in countries, including China, India, Japan, Thailand, and Vietnam, is expected to fuel the regional market growth in the near future.